How Vizio Went From Nowhere to No. 1

Why has Vizio, a company that didn’t exist until 2002, become the biggest seller of LCD TVs in the United States?

It’s the kind of question that business-school graduate students may well ponder. But after spending the day at their high-styled Irvine, Calif., headquarters talking to one of the company’s founders, I have a few thoughts as to what’s gone right.

Being in the Right Place at the Right Time
Vizio made its name by selling low-priced flat-panel TVs at a time when many of its competitors’ products were simply unaffordable. To do so, the company sourced common components from Asian manufacturers and provided little value-added engineering.

It wasn’t the only one to try that tactic, but it had one ace in the hole: Costco. The company’s founders developed a relationship with Costco when they were at Princeton Graphics, and Costco’s buyer took a liking to their products.

Making Do With Less
As a new company, Vizio had no legacy costs. And as an assembler rather than an inventor of TVs, it didn’t need to employ a legion of engineers and support staff, starting its business with just three people. Today, the company employs just over 100 in Irvine. It outsources its repair facilities, as well as part of its customer support staff. “There’s less of us that need to eat,” Ms. Newsome said.

And with a limited marketing budget, the company was one of the first TV makers to design its boxes to look more like magazine ads than storage containers. Its shipping boxes are colorful come-ons, filled with information like set dimensions and clearly laid out features.

For consumers unsure of what to look for in a TV, the boxes’ easy-to-understand information can help put them at ease.

Letting the Competition Lead
As a value brand, Vizio has never been the first to introduce new technology. Instead, it waits in the wings to see how things will pan out. While Internet-connected TVs and broadband content have been available for about two years from its competitors, Vizio is introducing its first Internet-connected TVs this fall. And the company won’t show 3-D-ready TVs until next year’s Consumer Electronics Show, one year after many of its competitors.

Its VIA Internet models feature wireless-broadband connectivity as well as a remote with a QWERTY keyboard and Bluetooth, so that users don’t have to point the remote directly at the set to activate a command.

Similarly, the company’s first LED-backlit LCD sets are just being introduced now, under the XVT name. The sets, available in 47- and 55-inch screen sizes, cost hundreds of dollars less than some of its competitors’ offerings. (One word of advice: If you’re considering purchasing the 55-inch model, wait until November, because the first versions will not include Internet connectivity.)

Also, the company has just marketed its first Blu-ray player, sold through Wal-Mart. At $178, it’s one of the cheapest available. While it includes BD-Live, it leaves out wireless Internet connectivity and an HDMI cable.

Vizio now conveniently sells HDMI cables, packaging two high-profit six-foot cables together for $40. The company says it sold 250,000 cable units last year and expects to sell one million in 2009.

Attention to Detail
Virtually no one likes to read manuals, especially the ones written by someone for whom English seems to be a second or third language. Vizio’s solution: a quick-start guide on a giant piece of heavy paper stock, written in elemental language and laid out in a comprehensible design.

While no one’s going to buy a TV because the instruction manual is well written, if consumers can figure out how to connect their components themselves, that cuts down on the expense of support calls. And it could add to positive word of mouth as customers tell their friends about their experience.

Making ‘Good Enough’ Technology
Vizio’s earliest sets had average picture quality. (Several years ago I tested one of their plasma models that couldn’t create a black darker than a medium gray.) But today’s sets have improved, so much so that Consumer Reports now recommends a number of them, stating that their picture quality is “very good.”

While videophiles may disagree, the average consumer may find that a decent picture at a good price, especially now, is worth the trade-off. (Consumer Reports also says in a recent blog that Vizio TVs are as reliable as others from top manufacturers, despite the fact that many complain about the sets’ short life.)

Of course, being No. 1 doesn’t mean you’re also number one in profitability. Analysts point to the fact that Vizio’s profit margins are well into the single digits, which could be precarious if the market turns against them.

Is your experience with Vizio good or bad? Would you still prefer to stick with the better-known brands for the sake of quality and staying power?

Few of my friends have a Vizio TV’s in their homes and for me the picture sharpness and quality pales in comparison with the Sony bravia that I have (32″). I feel the Bravia’s sound quality is much better than Vizio and I have had this model for over three years with no problems.

I have been a fan of Sony for many years (PS1, PS2, PS3, TV, VAIO computers, digital camera, and sound systems) and I will continue to be one for the foreseeable future.

I bought a Vizio 50′ plasma from Costco several years, and have been nothing but pleased. The picture quality is better than a new LG 50′ plasma I recently bought for another room in my home. Vizio makes a good product, especially for the money.

I bought a Vizio just a month back. I am so happy to read this. Well I believe it is a great value for the buck. Sony and many other models are just ridiculously expensive. Vizio gives me what I want, a great picture for a low price nothing more fancy.

I can attest to Vizio’s quality. Having watched it from the media/review perspective, myself and my colleagues have seen the rapid rise of Vizio from a cost-effective brand to a high quality to cost brand.

Not to mention, there’s nothing better than seeing a domestic company trounce its competition.

I have seen some not-so-great looking Vizio’s as well. But they have several different lines. You can’t compare an entry level Vizio to a Bravia, obviously the Sony will win in the end regarding picture quality. Vizio has higher end models too that compete with the quality of a Bravia at hundreds less.
Vizio is obviously doing something right, as there are dozens of cheap entry level brands out their that look like crap.

Vizio TVs are cheapy and they show it in their image quality. As their price advantage diminishes, I expect them to fold. In my personal experience, they are not as reliable as other TVs (I had two ‘burnouts’ – experiences I’ve never had with any other TV or PC LCD) and their customer service stinks. They have good marketing though.

I bought a 47″ Vizio LCD TV right before Costco changed it’s return policy a few years ago.

The TV has been working great for two years now, but I am comforted by the fact that if something goes wrong, I can always return it to Costco for a full refund.

Costco has since changed its return policy on TV’s — they now only allow returns within 90 days of purchase.

If I didn’t have Costco’s return guarantee back when I purchased this TV, chances are I would have chosen a more established brand. Who want to take the risk buying a TV from a no-name brand, and having it possibly fail in a few years. There was no track record.

Vizio was very fortunate to have Costco as their channel of sales during those days.

We have 2 Vizios: a 32″ & a 22″. They’re both hooked up to an old UHF bow-tie antenna in the attic, which gets us over-the-air digital HD TV (providing a particular show is being broadcast in HD). The picture quality on both is very good, better than the picture on our 2 Sony Wegas hooked to cable.

Bought a Vizio from Costco last year. Only lasted a couple of weeks before I started having sound problems from it. Returned it for a full refund and got a Sharp as a replacement – has been perfect with superior sound, superior picture, etc. Have had no problems with it. Would not buy another Vizio – doesn’t matter how cheap they are. You get what you pay for.

I have two Vizio 42″ LCD’s for 3 years and they’re fine. I did have problems with the first one I had and Vizio customer service was great. They replaced the TV with no hassle and even had the delivery company reinstall the set. I have nothing but good things to say about Vizio. Would buy another in a heart beat.

I bought the 50″ plasma at Christmas last year. About a two months a go a section of the screen blacked out about two inches wide from top to bottom. I guess this happens to plasmas sometimes when they heat up and the solder heats, cools and cracks. Disconnecting the components that control the pixels in that area.

I called Vizio. They didn’t have my model in stock so the replaced it with a 55″ LCD that was also 1080p. It’s really nice, of course there is a trade off with no burn in but worse black levels. I really am blown away by the picture though, very nice television and very nice of them to upgrade me with a bigger, newer television.

My only complain is that it took them a month to replace it. They took their sweet time. Vizio makes a very nice product.

I have four Visio LCD TV’s (2 – 37″, 1 – 32″, 1 – 42″) bought over the last 2 years at Costco. The last two, which are 1080p, have terrific picture quality and get many compliments from my guests.
I have yet to see why anyone pays more for competing brands, although they are now selling for less since the price fixing scam has been revealed.
The claims of unreliability for Visio are completely false in my experience.

Hitachi makes better T.V.’s which can be found at reasonable costs. The difference is that they remain under the radar because they don’t lead with marketing piazz ,and they don’t make an abundance of models! Yet, they remain high quality!

My next TV will be a Vizio (November or December). For the past 30 years I have owned nothing but Sony. Why am I changing brands? If any of you have purchased a Sony rear projection TV in the past 6 years you know the answer. Mine was purchased 6/05 and lasted until 12/08. It has an optical block (light engine) defect which there is no permanent fix for.
Sony knew of the defect but did not issue a recall or notify registered owners. Check out the blogs, forums, and class action suits before you buy. If you want to purchase from a company that will stand behind the product, do your homework first!

I’m probably more picky than most concerning picture quality. I viewed the Vizios of all sizes at Wal Mart with the other brands and felt they held up to most quite well with the exception of the best Sanyos and Sony Bravias. I got a 32″ Bravia and am very pleased, paying an extra $100 or so is worth it for the time in life I use it.

I got a 50″ Plasma three years ago as a second set. My experience has been great. The price/performance value can’t be beat. The company’s after-purchase service is also terrific. After a year, the power board went bad. I called the service number, got a human, told him what happened, and within a couple of days a technician was at my house installing a new board, no questions asked. Didn’t even need to show him my receipt.
I talked a friend into getting one, also a 50″. His son in law, who has a Sony costing twice as much, couldn’t believe how good the picture was.
I highly recommend them.

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